Tag: Mexican economy

Definition: NAFTA (the North American Free Trade Agreement) is a treaty between Canada, the United States, and Mexico that removes trade barriers. By eliminating trade barriers, NAFTA increases investment opportunities. The NAFTA agreement is 2,000 pages. It has eight sections and 22 chapters. That makes it the world’s largest free trade agreement as measured by Gross Domestic Product (GDP). Either the Trans-Pacific Partnership or the Transatlantic Trade and Investment Partnership will replace it. They must first be ratified. NAFTA is still controversial. First, the U.S. lost many manufacturing jobs to lower-cost Mexico. Second, workers in jobs that weren't outsourced had to accept lower wages. Third, Mexico's workers suffered exploitation in its maquiladora programs. For more, see NAFTA's disadvantages. Yet, U.S. grocery prices would be higher without tariff-free imports from Mexico. It's also clear that imports of oil from both Canada and Mexico prevent high gas prices. For updated…

THE DRAMATIC election of Donald Trump as US President has already sent shockwaves through global financial markets. The value of the dollar has fallen against safe haven currencies such as the yen but strengthened against the Mexican peso. As the financial markets react to his election, here is a look at what his presidency could mean for the global economy. What does Donald Trump’s victory mean for the markets? David Cheetham, market analyst at at XTB, said: “The news has reverberated around the globe and financial markets with large declines seen in stock markets and safe haven assets such as gold rallying. “The outcome of this contest has seemingly caught the markets off guard in a repeat of the Brexit vote with forecasters and reputable pollsters wide of the mark…